Deposit interest rates reach 62.5% per annum
Deposit interest rates reach 62.5% per annum
JAKARTA (JP): Domestic commercial banks have raised interest
rates to as high as 62.5 percent per annum for one-month deposits
following the central bank's increase in promissory note (SBIs)
rates Wednesday.
But the high interest rates have yet to lure many new
depositors.
A front office official at the state Bank Ekspor Impor
Indonesia (Bank Exim) said that although there was an increase in
the number of people placing their funds in one-month deposits,
which offered the biggest yields, it was smaller compared to the
influx of deposits last month when the rates were raised to as
high as 55 percent per annum.
"There has been no rush. I think most people already placed
their money in time deposits last month. I don't think they will
deposit more this time," he told The Jakarta Post.
Bank Exim raised its rate for one month deposits to 62.5
percent, up from its previous level of 55 percent.
The bank increased its three-month deposit rate to 48.5
percent, up from 37.5 percent, while its six-month and 12-month
interest rates jumped to 40 percent from 25 percent and 23
percent respectively.
State Bank Negara Indonesia (BNI), listed on the Jakarta Stock
Exchange, maintained its old rates, however. The bank kept its
one-month deposit rate constant at 52.5 percent, while its three-
month and six-month deposit rates stayed at 35.5 percent and 24
percent respectively.
Bank Central Asia (BCA), the country's largest private bank,
raised its one-month deposit rate to 58 percent, up from 50
percent, and its three-month rate to 46 percent, up from 35
percent.
A BCA customer service official said many of the bank's
customers had complained about the increase because they did not
expect it so soon.
Many customers could not benefit from the higher rates because
most of their funds were already placed in one-month deposits, he
said.
BI had raised its SBI rates three times in the first five
months of this year. The last increase was on April 22.
On Wednesday, BI again raised the interest rates on its SBIs
for all maturities by a range of 4 to 12 percentage points in an
effort to stabilize the rupiah and to curb inflation.
BI allows commercial banks to raise their savings or time
deposit interest rates within 25 percentage points of prevailing
SBI rates. But commercial banks made a consensus last month to
offer interest rates no higher than five percentage points above
SBI rates.
Several banks said they still maintained their old rates
despite the fresh increases in the SBI rates.
But middle-sized banks like Bank Putra Surya Perkasa (Bank
PSP) have raised their interest rates believing it was the best
way to compete for tight public funds. The bank raised its one-
month deposit rate to 58 percent, its three-month deposit rate to
44 percent, six-month rate to 34 percent and 12-month rate to 33
percent.
State Bank Bumi Daya also increased its interest rate for one-
month deposits to 60 percent from 52.5 percent, while its three-
month deposit rates rose to 46 percent from 36 percent.
Publicly listed Bank Bali offered various deposit rates for
all maturities depending on the amount deposited. The bank's one-
month rates are 45 percent for deposits between Rp 5 million and
Rp 25 million, 50 percent for between Rp 25 million and Rp 100
million, 52.5 percent for between Rp 100 million and Rp 1 billion
and 55 percent for deposits over Rp 1 billion. (gis/aly)